Schaeffer's Daily Market Blog Features: Nike, Centurytel, AMEX Oil Services HOLDRS Trust, Valero...

CINCINNATI -- Among the stocks featured in the December 18 edition of Schaeffer's Market Blog are Nike (NYSE:NKE), Centurytel (NYSE:CTL), AMEX Oil Services HOLDRS Trust (AMEX:OIH), Valero Energy (NYSE:VLO), and Newmont Mining (NYSE:NEM). Schaeffer's Market Blog is just one of the many free market

commentaries written every day at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. The Market Blog is written throughout every trading day by Schaeffer's financial analysts and traders. They are quick insights to the day's most notable market activity from an options perspective. To have this report delivered to you free via email every day click on the following link and you'll also get an opportunity to win an iPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13M&PAGE=1

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2:43 PM Nike Ahead of Earnings

One stock to keep an eye on this week is Nike (NYSE:NKE). The footwear phenom is slated to report earnings after the close on Wednesday, December 20. According to Zacks, analysts are expecting a profit of $1.13 per share, while Yahoo! Finance reports a consensus estimate of $1.12 per share on revenue of $3.76 billion. On WhisperNumber.com, the consensus investor estimate stands at $1.12 per share.

One key point to keep in mind is that these estimates are below the company's year-ago profit of $1.14 per share. However, during the same quarter a year ago, the firm saw sales of $3.48 billion.

Technically speaking, the stock is encountering some resistance at its 10-day moving average and has dropped below support at its 20-day trendline. Yet, the equity has staged a nice rally of roughly 27.6 percent and appears to be consolidating into support at its ascending 10-week moving average, which NKE has not closed a week below since the beginning of September.

3:43 PM CenturyTel Scores a Perfect Ten

My colleague Mark Fightmaster wrote a bullish piece on telecommunications firm CenturyTel (NYSE:CTL) earlier this month. The stock caught my eye today because it's performing quite well on an otherwise lackluster session. CTL is up nearly two percent and has traded as high as 44.11. That's the stock's highest point since January 2000. CTL is one of just a handful of stocks that garner a perfect 10 out of 10 on our Schaeffer's Equity Scorecard.

Not only is the stock making new highs, but the company has beaten the consensus earnings estimates in each of the past four quarters. Yet option players are betting against the stock. The Schaeffer's put/call open interest ratio is 1.33, higher than 98 percent of all such readings taken during the past year. Short interest is also high, with a short-interest ratio of nine days and a short-to-float ratio of six percent. And 13 of the 14 analysts that cover CTL have a "hold" or worse rating on the firm, including four who rate the stock a "strong sell." The combination of strong fundamentals and technicals along with significant pessimism suggests the path of least resistance is higher. The pessimism represents sideline money that still exists and could push the stock higher if those who are bearish switch camps.

3:54 PM Bad Day for Energy and Metals

It's a pretty slow day, but most of the stocks on my screen are in the red. The big loser today is energy, as crude oil is down $1.30 to $62.79 per barrel, sparking a five-point drop in the AMEX Oil Service HOLDRS Trust (AMEX:OIH) for a 3.56-percent decline, and a 2.70-percent drop in the Select Sector SPDR Energy (XLE). Valero Energy (NYSE:VLO) is down three percent, and Exxon Mobil (XOM) is down 2.33 percent.

Metals aren't doing much better as the AMEX Gold BUGS Index (HUI) is down about two percent on lower gold prices. Newmont Mining (NYSE:NEM) is down 1.65 percent and Meridian Gold (MDG) is down 1.40 percent.

Remember, looking out into 2007, these are two areas that Bernie Schaeffer thinks could be ripe for underperformance. That doesn't mean they can't bounce, but given the constant positive sentiment and poor price action, these groups could be heading lower.

For more information on these stocks or any stock in your portfolio, feel free to visit our Schaeffer's Equity Scorecard feature. Click here to read all of today's Market Blog: http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13C&PAGE=1

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About Schaeffer's Investment Research (www.SchaeffersResearch.com)

Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a financial information and trading resources company. It publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter. The firm's contrarian approach focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm's website, http://www.SchaeffersResearch.com, is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Click here for more details about Schaeffer's trading methodology: http://www.SchaeffersResearch.com/method.